My first question is "who did the other two audits?" Were they full financial audits performed by a CPA? Or were they performed by individuals or a committee, with some accounting or bookkeeping experience, like so many parent group audits?

It sounds to me like the school board is diving into foxholes and looking for a CYA position. By ordering a full audit by a board certified CPA, they are hoping for a definitive answer to the allegations that is beyond reproach. If there is any truth to these allegations, they are thinking, then they have to answer why they didn't know what they should have known. They don't want to look like a Bishop reassigning a pedophile priest.

Having said that, I think your wife should talk to a lawyer. Do the accusations meet the definition of libel or slander? A lawyer can answer that question, I can't. If things go bad, and your wife is terminated, will she have a wrongful termination case? A lawyer can answer that question, I can't.

And in the end...assuming that everything is legitimate, and your wife is exonerated...and she does have a legitimate case for libel and/or slander...is persuing that claim a move you wish to make?

Oh my--my sympathy goes out to you & your wife for the stress you're contending with.
I'd have to say that it's not PTA who seems to be "out to get" your wife. It seems like something very personal instigated by the treasurer.Sounds like she is worried that she may lose her perceived position of power if the status quo changes and she's being very childish in retaliation.
One question I would have is--where are the minds of the rest of the Board? You say there have already been audits that have turned up no foundation for this woman's allegations yet they're willing to pay for ANOTHER audit? To me, this seems like a waste of PTA funds that could be better spent on the kids. Exactly where is their focus? If it's the treasurer bringing this accusation of impropriety, certainly she must be a party to it since she's in charge of the PTA funds.Or maybe she's not thinking about the conclusion that most rational people would draw.
I would encourage you to get a lawyer--this is serious business which could destroy a career as well as demoralize the entire school.I'm sending hugs to your wife--does she have a good relationship with the parents? I'd try to rally them--I'm certain that this whole mess is creating a tense atmosphere at the school. That woman needs to be stopped and if the rest of the PTA board is backing this witch hunt to the point of involving the media, they need to go too. I'm disappointed in the School District also for letting things get so out of hand by giving this woman carte blanche in her attack.
What values are we teaching our kids when these sorts of things happen? This makes me very sad. Day to day workings of the school should be the providence of the people directly involved in the school for the benefit of the kids in that school.Petty personal baggage has no place in that. Unfortunately, you have to deal with those personalities too, which is difficult.
I'm not certain that I've added anything of value here that could help your situation, but my thoughts are with you and your wife. Please keep us posted.
Let me say that our school left PTA to start a PTO for our school. It certainly wasn't because of anything that PTA did, but what happened with the people who ran our group under their guidance.

My wife is a principal of a public elementary school in California. At the beginning of the year, her parent group (currently affiliated with the Cal State PTA) informed her that it wanted to explore two options: PTO and/or a private (non-profit)foundation.

Her response was that she was open to the exploration,but would defer the final decision to the parents. Her sole, interest, she said, was to do the very best for her students. Sounds harmless enough, eh?

Well, her PTA treasure learned of this and went BALLISTIC. Since that time, she's engaged in a search and destroy mission to get my wife suspended or fired. She's trumped up charges of financial impropriety, filed a formal complaint with the Board, and publicly accused her not only of mismanaging the PTA funds, but STEALING them in her previous assignment. She has also summoned the regional PTA treasurer, attack-dog style to back her up. ALL of the charges are baseless. They are in fact, libelous. The School Board, not fully understanding this person's approach, has given this person a broad forum to level the accusing finger...and now the local news media has picked this up. It's taken on a life of its own, and I'm afraid people are ignoring the facts (TWO audits have already shown no wrongdoing, yet the Board has ordered a third...with the same firm that audits its own account). My wife is ready to take a stress leave and file suit against the accuser (for libel) and the district (for failing to allow her due process in an open meeting). She feels like she's been run over by a truck...is just now understanding the very personal nature of this attack.

Have any of you seen similar PTA tactics? Does this look familiar to you? Who is issuing the "marching orders" to win at all cost?

I'd really appreciate your insight; right now, my wife is in the fight of her life to keep her job...after 29 years in education and winning a number of state awards. This has turned into a nightmare.